Problemin march 2014 jerome jenkins entered a partnership, Ask an Expert

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In March 2014, Jerome Jenkins entered a partnership by contributing to the partnership $10,000 cash and machinery which had an adjusted basis to him of $6000 and a fair market value of $9000. Jerome acquired the machinery in 2011 at a cost of $12000. His capital account per books was credited for $20,000, which constituted 25 percent of total partnership capital, and goodwill was recorded for the difference.

How much (and what type of) gain will be recognized by Jerome because of the above transaction?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92750071

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